Answer:
10.4%
Explanation:
The computation of expected return on a portfolio is shown below:-
Expected return = Risk Free return + 5%Beta ( Market Return - Risk Free return)
= 5% + 0.60 × (17% - 8%)
= 5% + 5.4%
= 10.4%
Therefore for computing the expected return on a portfolio with a beta of .6 we simply applied the above formula.
The market return less risk free return is known as market risk premium
Answer: forced distribution method
Explanation:
JUST DID IT
It can affect the company's ability to get a lending (borrow money). It can also affect the chances of finding an investor.
Answer:
V(n)=140,000-10000n
V(7)=$70,000
Explanation:
Purchase Cost= $140,000
Value After 11 Years =$30,000
Depreciation per Year =
The truck depreciates at a rate of $10000 per year.
Using straight-line depreciation, the value of the truck in dollars, V
The linear function of its age in years n, V(n)=140,000-10000n
When the truck is 7 years old
n=7
Truck's Value, V(n)=140,000-10000n
=140,000-(10000X7)
=140,000-70000
=$70,000
<span>A possible reason that a company would sell stock is to help expand their business, hire more people and develop new technology. Businesses will sell stock so that they can accumulate more cash on hand to have for funding other projects within the company. Having more cash on hand allows for more options to grow at a quicker rate. </span>